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Airfare hikes as Sudanese Pound continues tailspin

July 20 - 2017 KHARTOUM
File photo
File photo

The Sudanese Pound has continued its steady decrease against the US Dollar for the second week in a row, with rates on the ‘parallel market’ well in excess of SDG 21 for a greenback.

The US Dollar hit SDG 21 on the streets of Khartoum at the weekend, and by Wednesday was well over that figure, compared to SDG 19 before the US decision to postpone its decision to lift economic sanctions against Sudan for three months.

In an interview with Radio Dabanga, political analyst Hafiz Ismail attributed the high US Dollar exchange rate against the Pound to increased demand amid a lack of supply, rather than the US decision on its own.

Weak exports

He said that the large volume of imports with weak production and lack of exports is the main reason for the lack of foreign exchange Dollars.

Ismail said it is very difficult to reduce imports because they are linked to basic needs such as flour, medicines, and other necessities He downplayed the impact of US sanctions decision on the currency market.

Regarding inflation, he doubted the report released by the Central Bureau of Statistics on Tuesday, saying that inflation in June fell to 32.63 per cent from 35.52 per cent in May.

He described the report as far from reality and pointed to the rise in prices of goods during the past three weeks by 10%.

Airfare hikes

The Sudan Civil Aviation Authority has announced a 25 per cent increase in domestic airfares for all states starting as of July 25.

On Tuesday a bulletin issued by the Authority set the price of airline tickets to El Geneina at SDG 2.035, to Nyala SDG 1.655, to El Fasher SDG 1,500, from Khartoum - Kassala SDG 900, El Obeid SDG 980 and Dongola SDG 950*.

The decision is expected to increase suffering of the people who are moving to Darfur as it is difficult to travel overland because of the security situation in the province.

*The official rate for the US Dollar quoted by the Central Bank of Sudan is SDG 6.6667, however on the ‘parallel market’, the Dollar has been trading for more than SDG 21 on the streets of Khartoum since the weekend.


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